Marijuana

Alliance Growers Closes $5M First Tranche of Financing

Alliance Growers Corp. (ACG.V) has executed on the first tranche of a financing commitment from Alumina Partners (Ontario) Ltd., a subsidiary of Alumina Partners LLC, a New York-based private equity firm, for a $5-million equity facility in a series of private placements, with an option to extend the commitment up to $10-million. The original term sheet was reported in a news release on April 6, 2017.

The company proceeded with the first tranche of the offering today by issuing one million units at an issuance price of 10.5 cents per unit, as well as the issuance of 150,000 common shares, representing a portion of the commitment fee in respect of the equity facility. Each unit consists of one common share and one share purchase warrant, exercisable at 21 cents per share for a period of five years.

"We are strong believers in the tremendous growth that lies ahead for the regulated cannabis industry," said Adi Nahmani, the Managing Member of Alumina Partners. "Alliance Growers has a robust multi-pronged approach to developing valuable assets in several key categories. We're excited to invest in them, and look forward to watching management accelerate the development of those assets to the benefit of all shareholders." The purpose of the Equity Facility is to provide the Company with continuous funding for its integrated projects at progressive intervals that are consistent with the value of the Company at each stage of its development and growth.

Dennis Petke, Alliance Growers' President and CEO, commented on the execution of the equity facility. "We are thrilled with this ironclad endorsement from a company of the stature of Alumina Partners. They strongly believe in the Alliance business plan and strategy and share our view of where the cannabis market is going. To keep dilution to a minimum, we have only exercised on a small portion of the available equity facility. This offer of financing, in addition to other financing initiatives, will provide the Company with the financial capability that ensures Alliance Growers can execute on its business plan. The Company's primary objective at this stage is to secure the property for the Cannabis Botany Centre as soon as possible. We look forward to sharing significant additional financing and business implementation updates with investors as we progress. We look forward to an exciting summer and fall at Alliance Growers." Mr. Petke went on to say "In the past two years, this U.S. based private equity firm has offered and signed definitive agreements with other strong companies in the cannabis sector. The firm approached Alliance Growers with a similar arrangement based on their belief in the Alliance Growers' 'Four Pillars' business strategy. Incredible opportunity exists in the cannabis and cannabis-related sectors and there are few teams in the industry that can fully avail themselves of all that opportunity without adequate funding. The industry is rapidly changing and evolving and companies need to position themselves for where the industry is going, like Alliance Growers has done. Part of that positioning for Alliance Growers consists of its strategy to add value to Licensed Producers individually, and for the entire industry as a whole."

Pursuant to the terms of the offerings, Alumina Partners will commit to purchasing up to $5-million worth of units of the Company in a series of private placements, consisting of one common share and one common share purchase warrant, at discounts of 20 per cent of the market price of the shares, with each offering occurring at the option of the company, throughout the 24-month term of the agreement. The exercise price of the warrants will be at a 50-per-cent premium over the market price of the shares.

About Alliance Growers Alliance Growers Corp is a diversified cannabis company driven by the Company's 'Four Pillars' Organization Plan - Cannabis Botany Centre, Strategic ACMPR Investments (Access to Cannabis for Medical Purposes Regulations), CBD Oil Supply and Distribution, and Research and Development. Alliance Growers has executed an agreement with Botanical Research In Motion International Inc., for a Canada Exclusive License to jointly develop and operate a 40,000 square foot facility to be the first of its kind in Western Canada to house a DNA Botany lab, extraction facility and Tissue Culture Plantlet Production facility to service the Cannabis market and agriculture market in general. The proposed Cannabis Botany Centre will grow Cannabis plantlets using proprietary tissue culture propagation, specifically the "Chibafreen Invitro Plant Production System", which assures consistent composition and purity of each plantlet for the growers.

Alliance Growers has rights to 50% of BCMM, a late stage applicant that submitted its ACMPR Application to Health Canada in 2014, and is also making a strategic investment in another private Company preparing to apply for an ACMPR producer's license. Additionally, the Company is investing in several cannabis industry participants, ranging from co-developing a Cannabis App for use by the cannabis industry and its markets, to negotiating business arrangements with several companies for the purchase and sale between the parties of live cannabis plants, tissue culture plantlets and other cannabis products and services.

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